Feeling like I had a failure day looking for my team, any advice?
Wholesaler · Waxahachie, TX · Member since 2021 · 13 posts · 17 votes
Me and my partner felt as if we did not have a successful day looking for our team. Spent about a total of 8-9 hours making calls today. Between lenders, brokerages, contractors, property managers we just did not feel as if any body was very interested in what we are trying to do. We did have only one win today in a lender who would does an 80% LTV Loan. Maybe our approach is wrong ??
Basically we told everyone we are new investors (don’t know if that is what threw them off), let them know our long term goals, and how we could provide value. You scratch our back we scratch yours. Most people wouldn’t even pick up the phone, the few who did seemed to busy to deal with new investors or just did not want to, and did not get any call backs from any messages.
Is this generally the process of finding good people, or are we doing something wrong...? Advice ??
DFW South Dallas Area
Two thoughts....1. Keep after it. No one said it is easy....it is work....real estate is get rich slowly, not get rich overnight...or in an afternoon.
#2. If you call/post and say "my partner and I", normally that is telling me you have no money and that it is your partner bringing the money. Maybe that is true or not true....but that is the first thing that comes to mind. So for the most part all those people you called, if they think you have no money, then you can't do deals, and wasting time. Also in this market, anyone that says "partner" to me, scares me. It's fast acting, so partner slows you down in most cases.
I think you're probably way too early in the process for some of those team members.
#1....get financing in place...have your preapproval letter in hand and maybe a bank statement that shows you have the other 20% and if you're flipping the cash for the reno.
#2...then you can go shopping, so then you need a realtor.
#3...when you get the house under contract, then you get the contractor....otherwise why does a contractor want to spend time with you now? For the chance of future business?
#4...when you get the house under contract and contractor in place, then maybe you get PM in place if you're not going to manage yourself.....while there are all kinds of reasons to have PM, I'd suggest if you are young and motivated and new to it all, maybe have a realtor help you get it leased, and you do the PM for the first 1-2-3....you'll learn the ropes and as you grow, then you can turn over to PM at some point.
An alternative is when the meetups get going again....go to a meetup...network....chances are you'll get all those contacts there, plus some others...and maybe 2-3 in each category.
Kind of crazy, but there is so much to learn. I think it is better to use the "come screaming in the office" approach for most people. Don't spend a ton of time getting ready.....go find your deals 50% deals. When you find one, "come screaming in the office" ....what do I do next....that might be a walk thru, maybe a contract, maybe that is rapport building....and you do that until you get to the next "come screaming in the office moment." and then you just move step by step.
You made those calls for what reason?
What are you trying to accomplish?
EDIT. I just saw you said you are looking for ‘your team’. I’m guessing some course selling guru said you need a team. I’ve been in the game for almost 40 years and don’t have a team
go to a lender see how much you qualify for based upon cash you have and your credit Search the mls,
Zillow, Facebook market place, find a house that you qualify for. Put in the offer with any agent
No team needed
Or look for owner financed places
watch Ben Mallah, Meet Kevin and Graham Stephen on YouTube. Do NOT buy any courses
@Michael Plante
Michael, thank you for the constructive criticism. I really appreciate it. I will take your advice. What I got that piece of info from was a BP sponsored book called BRRRR by David Greene.
Two thoughts....1. Keep after it. No one said it is easy....it is work....real estate is get rich slowly, not get rich overnight...or in an afternoon.
#2. If you call/post and say "my partner and I", normally that is telling me you have no money and that it is your partner bringing the money. Maybe that is true or not true....but that is the first thing that comes to mind. So for the most part all those people you called, if they think you have no money, then you can't do deals, and wasting time. Also in this market, anyone that says "partner" to me, scares me. It's fast acting, so partner slows you down in most cases.
I think you're probably way too early in the process for some of those team members.
#1....get financing in place...have your preapproval letter in hand and maybe a bank statement that shows you have the other 20% and if you're flipping the cash for the reno.
#2...then you can go shopping, so then you need a realtor.
#3...when you get the house under contract, then you get the contractor....otherwise why does a contractor want to spend time with you now? For the chance of future business?
#4...when you get the house under contract and contractor in place, then maybe you get PM in place if you're not going to manage yourself.....while there are all kinds of reasons to have PM, I'd suggest if you are young and motivated and new to it all, maybe have a realtor help you get it leased, and you do the PM for the first 1-2-3....you'll learn the ropes and as you grow, then you can turn over to PM at some point.
An alternative is when the meetups get going again....go to a meetup...network....chances are you'll get all those contacts there, plus some others...and maybe 2-3 in each category.
Kind of crazy, but there is so much to learn. I think it is better to use the "come screaming in the office" approach for most people. Don't spend a ton of time getting ready.....go find your deals 50% deals. When you find one, "come screaming in the office" ....what do I do next....that might be a walk thru, maybe a contract, maybe that is rapport building....and you do that until you get to the next "come screaming in the office moment." and then you just move step by step.
Two thoughts....1. Keep after it. No one said it is easy....it is work....real estate is get rich slowly, not get rich overnight...or in an afternoon.
#2. If you call/post and say "my partner and I", normally that is telling me you have no money and that it is your partner bringing the money. Maybe that is true or not true....but that is the first thing that comes to mind. So for the most part all those people you called, if they think you have no money, then you can't do deals, and wasting time. Also in this market, anyone that says "partner" to me, scares me. It's fast acting, so partner slows you down in most cases.
I think you're probably way too early in the process for some of those team members.
#1....get financing in place...have your preapproval letter in hand and maybe a bank statement that shows you have the other 20% and if you're flipping the cash for the reno.
#2...then you can go shopping, so then you need a realtor.
#3...when you get the house under contract, then you get the contractor....otherwise why does a contractor want to spend time with you now? For the chance of future business?
#4...when you get the house under contract and contractor in place, then maybe you get PM in place if you're not going to manage yourself.....while there are all kinds of reasons to have PM, I'd suggest if you are young and motivated and new to it all, maybe have a realtor help you get it leased, and you do the PM for the first 1-2-3....you'll learn the ropes and as you grow, then you can turn over to PM at some point.
An alternative is when the meetups get going again....go to a meetup...network....chances are you'll get all those contacts there, plus some others...and maybe 2-3 in each category.
Kind of crazy, but there is so much to learn. I think it is better to use the "come screaming in the office" approach for most people. Don't spend a ton of time getting ready.....go find your deals 50% deals. When you find one, "come screaming in the office" ....what do I do next....that might be a walk thru, maybe a contract, maybe that is rapport building....and you do that until you get to the next "come screaming in the office moment." and then you just move step by step.
AMAZING reply!!
There it is so succinct as well as useable
Me and my partner felt as if we did not have a successful day looking for our team. Spent about a total of 8-9 hours making calls today. Between lenders, brokerages, contractors, property managers we just did not feel as if any body was very interested in what we are trying to do. We did have only one win today in a lender who would does an 80% LTV Loan. Maybe our approach is wrong ??
Basically we told everyone we are new investors (don’t know if that is what threw them off), let them know our long term goals, and how we could provide value. You scratch our back we scratch yours. Most people wouldn’t even pick up the phone, the few who did seemed to busy to deal with new investors or just did not want to, and did not get any call backs from any messages.
Is this generally the process of finding good people, or are we doing something wrong...? Advice ??
DFW South Dallas Area
Hi Tanner,
You worked ONE DAY....and found ONE...So maybe you have to work 10 days to find 10, and then another 10 days to VET that 10, and discard 3 because their work is not up to your standards, or etc...
If it was easy--everyone would be doing it, and you have one more then you had yesterday.
Good Luck!
@Scott Mac
Love the response Scott. Definitely not at a point of giving up, I am in it for the long run. Just so in the dark it is a tad overwhelming. Going into this blind folded. But the point of view is what I needed. Thank you sir.
@Bruce Lynn
Come screaming in the office is a great analogy and I have to say I have been debating just jumping into the waters, but I have always been detail oriented. When I do not have the details of everything it worries me that I will jump in and come into problems I can not solve because I am not prepared... But that is something I obviously need to fix based on what you are saying. I will use your analogy and take one thing at a time, while making calculated risks at each turn.
As far as the partner situation, it is my twin brother. Not a random person, but I will definitely not refer to him as my “partner” anymore if that is the persona behind it lol
If you're calling realtors and you don't have your financing lined up first, its definitely hard to get a call back. Get your lender first and then take your approval and what you want to buy to your realtor. I think trying to get everyone all at the same time doesn't make much sense, here's the order I'd go about it:
1. Lender
2. Realtor
3. Inspector/Property Manager/Contractor while you find the property and go under contract. A PM and Contractor don't have time helping you, come to them with a property to manage or a project to construct and then they'll call you back
@Kate Barry
Noted. Thank you for the response Kate!
You are getting some great advice on the 'mechanics' of this game. I kept a tally of the number of lenders I called but stopped counting after 75. I even started telling the lender they were the ## lender I have spoken with.
Learn to ask the best questions for your situation (LTV, current rates, fees, etc) to see if the lender suits you. With most lenders, I can figure out if they are a good fit for my situation within about 5 min call.
@Joe G.
Thanks for the insight Joe!!!
Greene over emphasizes the importance of finding a rock star team to begin with in all of his books.What’s the point of interviewing all of these people when you don’t have a deal in sight? 95% of all new real estate investors never secure their first deal. You think that “rock star” contractor or property manager really gives a heck about you if you don’t have anything under contract? Hard money lenders don’t even want to talk to you until you have a deal you’re considering. Real estate agents will probably work with you but if you’re relying on a realtor to find you a deal in this market then you’re in for a rude awakening. Focus the vast majority of your energy on finding the deal, it’s the hardest part of this business, and something most people really struggle with. Once you figure that out, everything else falls in place.
@Tanner Foy These are really wild times buying and selling real estate. Everyone involved in all ends of this are VERY busy. I was totally qualified going in for a purchase and had a hard time with the banks just due to the sheer amount of applications they are getting. Same with the real estate agents. They are so busy with putting in bids or taking them right now. I would just concentrate on what is needed first as @Bruce Lynn and @Kate Barry suggested. As you can see they are both realtors and that is what they would need and want first (you being qualified for a loan). If you qualify through your own finances (cash), a loan or borrowing from friends/family you can then borrow directly from the seller or go through an agent. So, that is your first thing to figure out...which direction to go. I have bought directly from the seller and borrowed the money from my father in law and I have done them cash out of my own funds and have also borrowed from banks. They are different routes. I read a book before buying an apt building, just following what I read. No team. Once I had it, I put together a team. Another time I used a mentor group and it came with a pretty set team with them even suggesting the banks to use. I also bought cash and found my Property Mgr who was also a realtor and she had the rest of the team. There is no set way. But you are outflowing with calls which is great. Phil Pustejovsky puts out a lot of videos and I liked something he said in regards being productive vs just being active. You have to get a product vs just being busy a lot. So, whatever gets you to a secured house is the most important issue right now. Hope this helps.
Less is more info sometimes. God gave us 1 mouth and 2 ears for a good reason.
There are a lot of contractors that want zero to do with investors or people looking for "investor friendly". Why? because they're not the most ideal customer. Good contractors find customers steadily through exsisitng customer referrals and will generally have a demographic they tend to work for.
Most service type businesses have their niches on who they want to work with. I'd imagine that rings true for a lot of the other types of pros you tried reaching out too. Sometimes by giving out too much info right away you filter yourself right out of their criteria of a ideal customer.
I'd try approaching it differently. Maybe try utilizing your existing social network, where people you acutally know have mutual connections to whom you're reaching out to. That establishes a little more trust off the bat.
Also I wouldnt really get into the specifics to heavily with cold calls. Maybe dont tell them you have partners or are newer unless they start to ask.
After 5 years I still spend at least 2 or 3 hrs a day talking to people looking to expand in some areas or open some new ones always looking for team member everything I do is remote I live in Canada but we have 267 projects to day its just 1 day at a time 1 problem at a time ... More the willing to chat about what we have learnt and share resources.
@Duane Alexander Thank you for your insight. Much appreciated!!!
@Tanner Foy
My best clients are investors, but after years and years, I won’t be babysat or micromanaged and they stay away, I do my job and they write me checks. This won’t ever happen with a newbie. And hard to find contractors to give you the time of day when we are super busy and you don’t have a property yet
The thing is, damn near everyone talks about all these pie in the sky dreams of what they truly intend to do in real estate on that initial call. Only a few actually realize those goals. The call is always the same - I plan on doing 10 flips this year, but never did one before, yet most want the lowered costs and attention as if they are already at that level. Until you're ready to pull the trigger utilizing a professional's services, its hard to get any engagement from folks who are at the top of their industry. For instance, in contracting (but this also applies to your agent, lender, etc.):
- "Hey, I'm planning on doing x number of flips this year, want to connect with a solid GC so I can get some quotes."
Ok - so how much are you going to pay me to prepare solid quotes on properties you don't even have under contract?
- "Hey, I've done 10 flips last year and would like you to discuss working for me on this next project."
Ok - after 10 flips how do you not have a solid GC relationship already? So you're just looking to cut costs and undercut at every stage vs. building a long-term relationship?
- "Hey, I did 2 flips last year with a GC who was always under-estimating and taking way longer than anticipated. I'm interested in meeting up to discuss my next project I have under contract and see if we're a good fit".
Bingo - I'm all ears.
The problem I think you are running into is that you aren't ready to engage everyone's services yet. Which is fine. Over your RE investing career, you'll likely go through a number of lenders, GCs, and agents before you find the right matches. Your margins will be limited in the meantime. And your requirements of those professionals will also change over time. For example - your first couple deals, you may need your hand held tightly by your agent. But after the first 5, maybe you know enough to handle most of the details yourself, so suddenly you're ok working semi-solo and getting a commission kickback. Equally for the GC route - after a while you'll learn general $/sf renovation costs so you don't need that much pre-purchase engagement from them.
Hey, @Tanner Foy. Going to disagree with much of the sentiment here except for @Kate Barry and @Bruce Lynn through Point #3.
You definitely want a team up front, especially if you're investing out of state.
Order definitely matters, though, to Kate's point, but with that said the only one that wont take your call until you have property under contract, is the contractor. You want the rest in place first so that they can offer referrals and provide checks and balances. The key is being specific and focused. No one wants a "project"; they want you to be a "prospect".
Net net, do your homework first and prove it to your potential team so they can tell you're serious and not a headache.
Good luck, sir!
@Matt
So if I were to try and hire you (being a newbie) how should I approach you?
Say I have a rehab property but you are skeptical because I am new, what would you expect from me?
Also, do your investors require you to itemize your bids ?? Or do you see this as micromanaging?
Genuinely curious to hear these questions answered from a contractor... looking to give my contractors the best experience working with me from day 1
Hey @Tanner Foy. The fact you are doing it and not thinking about doing it is light years beyond most people, even those on BP. I'm in the DFW area, I'll pm you, I'm happy to answer any questions you may have.
@Brian Kantor
Brian.... I am speechless.. thanks for the advice! Beyond grateful. If there is anything I could ever do to help you, let me know. Thanks.
@Matthew Olszak
Thanks for the straight forward advice. Much appreciated!! Will take this into account.
I run from anyone speaking in terms of "my team," or "assemble your team" as author David Greene apparently advises. Bullcrap! What a load of lousy advice! The only "team" you need starting out is yourself. Once you've proven you can perform, and run out of time to do things yourself, then maybe think about getting help. Not good to inform everyone you are a new investor. There are times in life where it doesn't pay to be completely honest, and this is one of them. I've been in the business not quite as long as Michael Plante, and like him, I've never had a team, either.
@Tanner Foy
That’s a good day. Get told NO 90% of the time and it’s gold when you get a yes. Building your “team” is key but only if you have a deal. If you are worried about lenders or whoever else telling you no, wait until you start speaking with real estate agents and owners. The NO’s will only get more plentiful. With every no you will be able to better tune your pitch and work on getting the yes.
Focus on getting your deals. You have your team, your partner. If you get a deal the team to close, flip, sell it will fall into place, may be building it through the chaos, but it will get built. If you find the deals the no’s from the lender, broker, contractor, and whoever else will turn into yes’. Work on finding deals, finding deals, and finding more deals. Everything else will fall into place once you have a deal.
If you want PM me and we I’ll shoot you my number and we can chat.